INDUSTRY PROFILE

Agriculture in India is one of the most important sector of the economy .it is

the mean of livehood of almost two third of the workforce of the Indian farmers.

because of the mechnization the Indian agriculture marketing began to boom

mechanization become a necessity to enhance productivity and conversation of

energy required for various operations involved in crop

production ,thranshing ,processing,

transportation ,value ,added ,storage,etc .priorities of mechanism were to be decided

as per the actual requirement of various agro climate zone and involves of land

preparation equipments ,crop production equipment techniques for cereal crops ,for

cash ,for oil seeds and pulses and horti cultural crops etc .the Indian agriculture was

facing the problem of lack of mechanisation for agricultural purposes which may

increase the labour cost and high cost of production .

The agriculture industry is on the brink revolution that modernise the

entire food production in India is likely to double in the excellent export .prospect ion

competitive pricing of agriculture products and standards that internationally

comparitable pricing of agriculture products and standards that are internationally

has created trades opportunities in the agro industry with a view to enhance the

place of agro machinery products the government has laid emphasis on providing

financial assistance to the farmers and other target group for assistance to the

farmers and other target group for purchases of different kinds of farms equipments

demonstration of new equipments among farmers for spread of new technology .also

in the operation ,maintaince ,repairs ,and management, of agricultural machinery

and quality improvement through testing and evolution etc,

Green Revolution refers to a series of research, development, and

technology transfer initiatives, occurring between 1943 and the late 1970s, that

increased industrialized agriculture production in India.The initiatives involved the

development of high-yielding varieties of cereal grains, expansion of irrigation

infrastructure, and distribution of hybridized seeds, synthetic fertilizers, and

pesticides to farmers.The term "Green Revolution" was first used in 1968 by former

USAID director William Gaud, who noted the spread of the new technologies The

green evolution leads to a big boom in the Indian agro machinery industry. Therefore

knowing this change, some of the Indian companies have done their diversification

program for production agro machinery equipments. They also got good support

from government of India agricultetors since independence made rapid studies in

studies in taking the annual food gain production from 51 million tone of the early

fifties to 208 million tones to the early fifties to 206 million tones to the century, it

has constituted significantly India .The existing agricultural scenario presented a

dismal picture, tradinal farming methods ,low yielding and improvement are wholly

unsuited to large scale cultivation .the only solution lays in mechanized formatting

which could turn around the agriculture to a great extend. In order to achieve this

objective to be setup without resorting to import which undoubtedly posed a heavy

burden on the nation’s exchequer were hardly suited to the local conditions.

AGRO AND TRACTOR MACHINERY IN INDIA

Green revolution in caused a great increase in the production the of food

products and this leads to the mechanisation of agricultural sector world widely. This

resulted the country witnessed unprecedented growth in agriculture which helped

india to hunger to self sufficient were closed down or did not even start because

stability of indian farming conditions . poor after sales service network presently only

two manufactures are producing power tiller .since the phase of production was slow

the government of india continuous to allowed limited import tractors to meet the

demand of the farmers till 1974.while approving foreign collabration government of

india made it mandotary that tractors to be allowed for manutacturing in india shall

be tested under laboratry and filled conditions to ensure that they were sutiable for

indian farming condition .

The tractor in india were introduced through

importation ,there were only 8635 imported tractors in use in 1951 ,the local tractor

started in 1961-62 with 880 number .similarly the manufacturing of power tiller

started in 1961 in Japan collaboration . at one time 12 models of power tiller were

licenced to be manufactured . however many of these units

COMPANY PROFILE

. The Kerala Agro Machinery Corporation Limited (KAMCO) was established

in the year 1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation

Limited (KAIC), Trivandrum for manufacture of agriculture machinery, specifically

power tillers and diesel engines. Subsequently KAMCO became a separate

Government of Kerala undertaking in 1986.

Although KAMCO has four units functioning in the state at

athani, kalamassery, kanjikode, mala. This study pertains only to the unit at Athani

where the company is headquarter. The Athani unit handles all the corporate

functions of the company.

Milestone of the company

1) 1970-assembly unit was established at athani unit by m/s kerala agro Industries

Corporation for the assembly of kubto ltd, Japan.

2) 1973-kamco was established as wholly owned subsidy of kaic

3) 1986-kamco becomes a separate undertaking under government of kerala.

4) 1992-established second unit at kalamassery in ernakulam

5) 1995-witnessed the setting up of 3rd unit of kamco at kanjikode in palakkad the

manufacturing of power tiller

6) 1996-kamco won international quality excellence certification of iso 9002

7) 2000-latest additional unit was being stared in mala

8) 2002-kamco become an iso 9001-2000 registered company by KPMG quality

registration certified by Dutch council of certification

9) 2008-fourth unit at mala got iso 9002certifiaction

VISION STATEMENT

With 3 decades of engineering excellence stands as the no.1 tiller manufacture in

India .4 state of the art production plant and an innovation R&D and stronger quality

control system rated as one of the best in he country .the technically competent

dedicated management and workforce will go to ensure that kamco shall be leader

for several year to come.

KAMCO TODAY

Kamco is synonymous with services to the small and marginal farmers in the country

.kamco through their precision &quality is revolutionizing the small and marginal

holding throughout the country .kamco today having 50% of the market share at

national level and having 4 plants at athani, kalamassery, kanjikode and mala.

OWNERSHIP PATTERN

KAMCO become a separate government of kerala undertaken in 1986 with a paid up

capital of Rs.161 lakhs and present net worth of company is 6014.14 lakhs. Total

workforce of the company is 600.

Product include

1) KAMCO power tiller model kmb 200

2) KAMCO super di power tiller

3) KAMCO power reaper model kr 120

4) KAMCO stone cutter ksc 625

5) KAMCO agria 602 de power tiller

1) KAMCO power tiller model kmb

Item Code: 1300000

Details

Kamco power tiller model kmb 200 is manufacturing at athani and

palakad units. It is a versatile machine that has radically changed the old labour

intensive methods of agriculture, by making almost all farming operations faster,

cheaper and easier. Its performance over the years has gained it the reputation

of being a complete farming unit. The cost on Tiller is around Rs.110000. The

renowned Tiller comes to you with the following in built advantages.

Simple movements and control for ease of handling

Perfectly balanced and vibration- free engine to reduce operator

fatigue.

Fail safe safety devices to prevent accidents

Automatic fuel control to save precious energy

Distinctive radiator cooling system for continuous operations

It is faster

Make cleaner windrows for easier collection

Reduces loss during harvesting

Use

KAMCO Power Tiller is a versatile machine primarily used for preparation of land for

farming operations. With suitably designed accessories the machine can be used for

a large number of specific operations like tilling, ploughing, weeding, pumping,

puddling, leveling, hulling, ridging etc.

Specifications

Model : Tiller KMB 200

Engine : ER 90

Type : Rotary, diesel-powered,water-cooled

HP : Continuous : 9

Max : 12

RPM : 2000

Fuel consumption : 1.5 liters per hour

Fuel tank capacity : 10.70 liters

No. of speeds : Forwards : 6

Reverse : 2

Tilling : 4

Wheel track : Maximum: 930 mm

Minimum : 690 mm

Tire size : 6.00x12

Ground clearance : 203 mm

Traveling speed : 15 kmph (Max.)

Tilling width : 600 mm

Tilling depth : 190 mm

No. of blades : 20

Tilling capacity : 1 hectare/8hrs.

Overall dimensions : L2250 x W: 820 x H: 1030 mm

Weight : 485 Kg

Light Unit : 12 volts, 40 Watts

2) kamco super di power tiller

ItemCode:1900000

Details:

Use

KAMCO ER90 Engine is equipped with Radiator and specially designed

diecast multi-blade axial fan. The engine can operate continuously for several

hours. It can be used as a prime mover either for stationery or for moving

applications. Kamco super direct injection combustion engine is the late stet

product, it creates an ideal mixture of fuel and air with the swirl type in left

port. The combustion chamber is placed in a cauity in the upper part of the

position itself to prevent heat loss and efficiency

Specifications

Type : Horizontal Water Cooled, 4 stroke

No of cyclinder: 1

Bore x stroke: 95 x105

Compression ratio continous rated :20

Output (hp/rpm): 12/2000

Specific fuel consumption (hp/hrs): 195

Maximum torque(kgm/rpm):4.5/2000

Cooling type: pressure radiator type (0.8 kg/cm2 natural convection)

Fuel : high speed disel oil

Lubricating system: forced lubrication with trouchoid pump

Starting system : by hand cranking assisted by decompression system

Cooling water capacity (Ltr) : 3.8

Fuel tank capacity: 12

Crank case oil capacity(Ltr) : 3

Overall dimension (mm):820 x 512 x640 (L xWxH)

Weight :145 kg

3) Kamco power reaper

Item Code : 2100000

Details:

Power reaper is manufacture in Mala unit. Power reaper is ideally suited for

harvesting of reaps paddy, wheat and similar crops like barly etc. It harvests and

make windows at the rate 3-4 hrs/hectare. It prevents loss of grains while reaping. It

gathers sheaves into neat windrows. It can reap farmlands at walking pace. It can be

easily lifted and carried by two persons. The fuel used in power reaper is kerocene,

cot of operation is the lowest and it helps the farmer to harvest his field at the lowest

ever cost. The smooth chain conveyor action delivers plants gently, making clean

windrows.

Use

KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and similar

crops. It harvests and makes windrows at the rate of 3-4 hours per ha. Since the fuel

used is kerosene, cost of operation is the lowest and it helps the farmer to harvest

his field at the lowest ever cost.

Specifications

Model : KR 120

Dimensions

Overall length : 2390 mm

Overall width : 1470 mm

Height (Up to Handle) : 900 mm

Weight : 116 KG

Working Capacity : 3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height : 60-120 cm

Crop release : Right side of machine (viewed from rear)

engine type:cyclinder: strockside valve, Air cool

Fuel : Petrol Start, Kerosene run

Rated HP : 3.5

Max. HP : 3.85

R.P.M : 3600

Specific Fuel Consumption : 339 gm/H.P hr

Fuel Tank Capacity : Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner : Oil Bath Type

Starting : Recoil starting

Travel

Forward speed : 59.0 m/min

Reverse : 50 m/mi

Applicability : Dryfeld&Wetfield

Main Clutch : Dog Clutch

Harvesting Clutch : DogClutch

Cutting Device : Reciprocating Knife Bar

Cutting Height : Adjustable 10-30 Cm grounded level

Cutting width : 120 cm

4) Kamco power stone cutter

Item Code :300000

Details

Use

a. Power stone cutter is a new innovative product mainly used for late

rife stone cutting .the machine found application at queries,

construction site etc.

b. carbide tipped cutting disc is employed to neatly cut 150-200 stone

piece per hour

Model : KR 130

Dimensions

Overall length : 2390 mm

Overall width : 1470 mm

Height (Up to Handle) : 900 mm

Weight : 116 KG

Working Capacity : 3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height : 60-120 cm

Crop release : Right side of machine (viewed from rear)

Engine

Type : Single Cylinder, 4 stroke, side valve, Air cool

Engine

Fuel : Petrol Start, Kerosene run

Rated HP : 3.5

Max. HP : 3.85

R.P.M : 3600

Specific Fuel Consumption : 339 gm/H.P hr

Fuel Tank Capacity : Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner : Oil Bath Type

Starting : Recoil starting

Travel

Forward speed : 59.0 m/min

Reverse : 50 m/mi

Applicability : cutting stones

Main Clutch : Dog Clutch

Harvesting Clutch : DogClutch

Cutting Device : Reciprocating long high power cutter

Cutting Height : Adjustable 10-30 Cm grounded level

Cutting width : 120 cm

5) Kamco agria 602 de power tiller

Item Code: 6100000

Details:

Use

Ideal for paddy /wheat cultivation

Inter cultivation Applications

Various land preparations at horticultural farms

Landscaping

Gardening

Potato harvester

Specifications

330 mm to 1200 mm tilling width

Low maintenance

Highly fuel efficient

Easy controls and operations

2 speed pulley belt drive

Engine : Petrol

Displacement : 149 Cc 2 Stroke Electronic

Clutch : Belt Stress

Speeds : 2Forwad

Air Filter : Oil Bath

Handle Bar : Robust And Easily Adjustable Rotary

Tiller: Adjustable -33 Cms To 120 Cms

Engine Stop : By A Security System Acting Automatically

Transmission : By Gear and Chain in Oil Bath

ORGANISATIONAL STRUCTURE

A Board of Directors governs the company. Board of Directors

includes Chairman, Managing Director and other directors. The Government of

Kerala nominates the Chairman of the Board. The Chief Executive Officer of the

company is the Managing Director who shall exercise his powers subject to the

overall control and supervision of the board. The Managing Director is the topmost

official and the Government delegate’s authority to the Managing Director as may be

entrusted and delegated to him from time to time by the board. The Managing

Director is the operational head of the company supported by General Manager and

Deputy General Managers discharging different functions. Managers and Deputy

Managers will assist the General Managers and Deputy General Managers.

The various departments of KAMCO are production, marketing, finance, material,

human resource, system, quality assurance. There are seven regional offices for

KAMCO at Trichy, Pondicherry, Kolkata, Guwahati, Hyderabad, Ranchi and

Bopal .

Production Department

Various manufacturing process

The various manufacturing process are done three main sections in the

company, they are

1) Assembly shop

2) Machine shop

The major functions of the production department are machining,

assembling and maintenance. Mainly 13 components are machined in machine

shop.

Assembly is one of the major sections in production department. All

the parts are assembled in this department. A chief mechanic is present in this

section. The engine assembly is one of the major works in the assembly. After

testing the assembled engines, it is sent to the painting section. Through different

transmissions in the assembly we get the finished product. Assembly section mainly

consists of three areas.

Assembly section

Engine line Transmission line KMB line

Company has a modern machine shop with Special

Purpose Machines (SPM), which ensures conformity with prescribed quality

standards. The materials purchased by the Purchase Department, are then send to

the stores. From there the materials are forwarded to the Q.A. department. From Q.A

Department the materials are forwarded to the machine shop. In the machine shop,

the process like milling, drilling, boring etc are done. From the machine shop the

finished products are not directly send to the assembly. It is send to the assembly

only after the inspection in Q.A. department and is then kept in stores.

Production details

Production are done in step by step procedure in the organisation .various

steps are

TANK PRE-TREATMENT PROCESSES

Process 1: Degreasing

In this process the item or product that is to be cleaned is dipped in

the tank with chemical at 60-degree temperature for about 20-25 minutes.

Process 2: Water rinsing

Here the item is simply rinsed with water for about 2 minutes.

Process 3: Acid treatment

Again the item is dipped in a solution containing 35% HCL for about

20 minutes. This is mainly done to remove rust.

Process 4: The component is again passed through two cold-water tanks and

rinsed.

Process 5: Phosphating

Again the item is dipped in a solution containing phosphate content

for about 45 minutes. After this process the surface of the component will be

completely cleaned.

Process 6: Water rinsing

The component is washed with water.

Process 7: Passivation

Here the component is dipped in a solution containing chromic acid

for about 20 minute

PAINTING

After cleaning the components it will go for painting through a

conveyer belt and after painting it will go to the oven through the belt. The painting

process is full automated and will done automatically through machine .the spray

painting method is used for painting process adopted with wet system and stowing

enamel paint is used . Mainly they are using two colours for painting, one is Ash

and the other one is Post office Red.

Assembling

After painting is finished the material will go the assembly shop were all the

parts like machine, wiring, jointing of various body parts etc are taken over .this are

taken over in various work centres which are meant for each process specially

namely engine line, transmission line, tiller line etc. the parts from painting and

machine shop are gathered and assembled in the assembly shop by skilled workers

Product final inspection

After the assembling is over the tiller will go to the quality assurance

department for final inspection .they will check the tillers as per assembly quality

plans are satisfied tillers will go to the central store department where they are

stocked.

Maintaince procedure

The maintenance measure followed here is total preventive maintenance

(TPM) which is a Japanese concept. Under maintenance department there are two

types of maintenance rooms. They are civil maintenance and electrical maintenance.

Once in 90 days maintenance is done. Another major aspect of KAMCO is zero

down time that leads to continuous production. .To ensure continuous process

capacity of machine and equipments of machine and equipments company carry out

the method of preventive maintaince and break down maintaince

Preventive maintaince are taken up for electrical maintaince

section .the machine are taken up for preventive maintaince under the super vision

of in charge heads as per preventive maintaince instruction

Break down maintaince is in hated by the concerned department

indicating the location and nature of default and signed by the reporting officer .the

work is got done through mechanics and after completion of the work the operation

is demonstrated and handed over to the concerned department on

acknowledgment .

Quality Assurance procedure

Company keep good quality in their all products with the help of quality

assurance department. For a company trying to more its presence felt in the

international marker through quality products and services, quality management

system should be at work. The company follows its 1SO 9001-2000 standards. It is

mainly for the quality.

Materials and the components from the vendor are received in the stores

department. And Accounts as inward receipts in the hands of stores (IGRR) This

IGRR NO: Delivery Chelan No: date, name of the vendor, quality grade of the vendor

etc. with this receipt the stores department handed over the components to the

quality assurance department. From here starts the function of Q.A department. In

Q.A department there is all specification of the components, to know these

components have all the specification that is needed for production.

Quality Assurance clarifies the components into two critical component and

non critical components. Critical components are crank shaft, all engine parts, gear

wheels etc. non critical components are nuts, bolts, and screws etc. The clarification

is mainly for ignoring the practical difficulty in checking. Complete inspection occurs

in critical components and only sample inspection in non critical components.

Practical difficulty in checking non critical components is the problem there from here

the production department as their requirements takes the components.

After getting a finished product from the assembly department for the final

checking. If it is “OK” it is gone to the store. From these the machine will enter into

marker through dealers.

Calibration cell:-Q.A departments are equipped with all modal facilities. The

company has a calibration cell to check and correct the measurements of all

measuring instruments.

Plant location

Company is located in kerala at ernakulam district in a place called athani will

30 kms from the city and is 10 kms away from Cochin international airport and 20

kms from Cochin port were the products of the company are exported through to

foreign countries.

Plant layout

The plant is having a 6 building were the various department like finance

department, system department, hr department ,marketing department are

working .the plant is having a production department building .A bulling for stocking

of raw materials and final products . The company is keeping a place for display of

products at the side of the NH47

MARKETING DEPARTMENT

Marketing department ensures that there is a proper flow of goods

and services from the company (producers) to the consumers. The products of

KAMCO is sold through the dealers, so the marketing department has a direct

relationship with the dealers, the products are sold throughout the country through

the Agro Industries Corporation of that particular state, the states to which the

products are sold are Kerala, TamilNadu, Andhra Pradesh, Maharashtra, Gujarat,

Rajasthan, Pondicherry, Chattisgarh, Orissa, Bihar, West Bengal, Assam,

Meghalaya, Manipur, Tripura, Uttar Pradesh.

The marketing strategy followed by the department is

Fixation of targets for each dealers

.The marketing department has regular contacts with the dealers

of each state.

The dealers are selected based on the certain criteria, i.e., first

of all, the climatic condition of the state is taken into

consideration, availability of land, etc

The steps followed in the marketing department are

1. Agreement is made between Dealers and KAMCO and then a target is fixed

(annual) by KAMCO for the purpose of sales as well as spares.

2. Order is placed by the dealers along with DD or by bank, the dealings of

KAMCO is done through Union Bank of India.

3. The marketing department sends the dispatch advice to Athani or Palghat.

4. Then the goods are dispatched by the Stores Department.

Sales forecasting

Sales forecasting is done by the marketing department by

taking into consideration of various factors. The main factor of sales forecasting is

previous year’s sales and the demand for the product in the previous year. Demand

for the product is collected from the dealers and the various factors that may affect

the current the current year sales are collected by conducting market survey and this

are used for the sales forcasting . Based on this a certain percentage of sales

forecasting is prepared. This is prepared and submitted to the board of directors for

final approval. In current year the sales forecasted is 7500 products. Different will

have different sales forecasting based on previous sales

Sales promotion techniques

In company sales promotion is done through various activitiestechniques

taken over in two ways. Techniques taken through

1)Customers

2)Dealers

Techniques through customers are

Free service campaigns:-company is giving its customers three free service

campaigns periodically .special officers are send to various parts with the request of

dealers and by giving advertisement in local news papers.

Demonstration: - company is taking participating in various demonstrations at the

important cities of various parts of the world with the consent of group of dealers of

that region and maintained through the dealers

Exhibition:- company will conduct exibition in institutions and other places.dealers

are in charge of the exibition and the money for that is re impresed by the company

when the bill of expense is given to the company

Subsidies ;- Company is also giving subsidies which are announced by state

governments periodically with companies procedures.this will help the company to

provide the product at a low price than the competitors product

.The company is also giving sales promotion on customer satisfaction by giving an

effective channel of communication and timely doing of various services by company

at time .

Training programs:- Company is conducting training for farmers for various parts

of the country. Company is conducting training program to people by sending

training officers to the place and giving a course of 3 days .by charging a fee of Rs

200 from them .the persons are find through the dealers and are informed to the

company .

Company is also using it sales promotion techniques through dealers.

sales promotion are also done through dealers

Awards:- Company is giving awards to the best dealers who had conducted sales

more than the target set by the company. Sales capacity of dealers are determined

by the company is based on the sales they had ,made on the precious three years

sales and by taking the average of the sales .

Compaction

During early periods KAMCO ruled the Market Company is now facing

compaction from exporting from china and various countries. .In India VST,

Bangalore is the major competitor of KAMCO. Japan, Korea and China are also

competing with KAMCO in the same market. Other competitors are Greaves and

Srachi. Company is competing with its competitors by supplying quality products .the

main advantage is that the government is helping the company by giving high

import tax for agricultural machineries and that will increase the price of the product

that will help to give products at low price that competitors .

Sales administration

Sales administration is done in correspondence with company dealers and

government officials .in sales administration the various activities like payment to

various which in connection with market department ,like dealers ,vendors .other

activities like order processing and giving to sales department , order forecasting ,

follow up of sales with dealers, techniques for increasing etc are included in sales

administration . Making up call for dealers, visiting up pf the dealers, evolution of

dealers are done through sales administration .setting up of the limit of sales for

each dealer are set by the sales administration.

Management of sales force

Sales force is managed through dealers. Company is not having any sales

representatives of its own. Company is managing the sales force through dealers.

company has given the dealer right to manage the sales force various situation to

the area .the dealers can give advertisement in media .the dealers can give

suggestion about the thing company can adopt to increase the sales .the dealers will

inform about various situations which will help to increase sales and about

conducting of campaigns , exhibitions , service campaigns .

Distribution system

Company is having is having 3 distribution system

Large dealer’s small dealers exporting

Company

Dealers

Sub Dealers

Consumers

Company

Dealers

Consumers

Company

Consumers

Major Dealers in India

1. West Bengal

Govt.-West Bengal Agro Industries Corporation.

Pvt.-Friend’s Machinery and spares Ltd

2... Assam

Govt. - Assam Agro industries Development Group.

Pvt. - Chem Trade India Pvt Ltd.

3. Tripura

Govt.-Tripura Horticulture group

Pvt.-Krishishilpa Udyog

4. Maghalaya

Pvt.-Stanly Roy Constructions

5. Kerala

Kerala Agro Industries Corporation.

FINANCE DEPARTMENT

Financial performance of an organization is very important factor for the long

term survival profitability of any organization. Finance is defined as the provision of

money at the time when it is required. Every enterprise whether big, medium or

small, needs finance to carry on its operations to achieve its targets. It is the

livelihood of an enterprise. Without adequate finance, no enterprise can possibly

accomplish its objective.

The Finance Department deals with the procurement and management of

funds. This department controls the overall financial transaction of the company. It

controls the receipts and payments of each and every activity for all the divisions. In

KAMCO, Finance Department plays a major role because in public sector only very

few companies are earning profit. KAMCO is a multi core multiunit organization. It

means KAMCO have more than one unit established with their own fund. Surprising

thing is that KAMCO is giving dividend and carrying profit for 22 years. The Finance

Department keeps a record of everything concerning any expenses or income.\

The important functions of Finance Department are:

Management of Receipts

Management of Payment

Budget and Budgetary control

Auditing

Costing

Statutory transactions

Management of Receipts

Accounting system

Company is having a fully computerised accounting system which is using

own developed software called KAMCO FINANCIAL ACCOUNTING STSYEM which

will keep all the detail of payment of bill to vendors ,dealers ,expenses and other

expenses and income .in this system the final accounts like profit and loss ac ,

balance sheet ,etc are prepared . The financial activities are entered to this system

and the system will automatically send this to the concerned accounts and keep all

the details.

Cost centres

The cost centres will have a preplan of the various cost that they may have for

the next financial year and acquired through budgetary control .each cost centre will

make its cost based on the volume of production for the next year and are included

in the budget and are submitted to the board of directors for approval. The cost

which are incurred are to be get permission from the board of directors

Profit centres

All the centres of the company are profit centres. The company is giving

special care for keeping all the centres as profit centre. As the company is allocating

the money as per the planning the centres of the company is in profit.various centres

located at various parts of kerala at Athani,Kanjikode,Kalamassery, Mala are the

profit centres of the company

Budgetary control

The annual budgets of the company are prepared both for the capital and

revenue based on the requirements furnished by various units and Departments.

The requests of the department are analyzed only after consulting with various

departmental heads and Corporate Divisional Management Group and finalized only

on the basis of disposition of funds. These budgets are presented before the

management for approval. The budget is reviewed half yearly. If some changes are

occurred they are submitted to management/ board through a revised budget for

approval.

Capital investment

The capital investment was made by the government in the beginning of the

company. It was 1.6 cores. Government further don’t make any capital investment.

This investment was made to make the assembly shope and procurement of initial

raw materials. The company further make its developments through the profit made

and loan from financial institution .the Company today making its investment for the

companies profit as the company is having enough cash balances

Financial managent

The company is having a well financial managent . the company is making

all the investment on various financial field according to the pre-planned

structure .the finance is allocated to each department only the required based on the

past year and based on the production planned .the excess money in invested in

government treasury and various government companies shares and the income is

distrusted to the government .

Government influence on financial policy

Even the company is a government company government don’t

have any influence in the investment policy of the company .the investment policy is

fully controlled by the board of directors and the policy is changed on the bases of

the availability of the cash balances of the company with approvel from board of

directors.

PURCHASE DEPARTMENT

The function of purchase and material items are coming under one

roof .the material department has the changes of all the inflow and outflow of

material used for production process .purchasing department purchase the product

from the vendors as the required quantity that get from the material department . the

company has around 220 gualified vendors and from this vendors company

purchasing material .company gives best vendor award for best vendors .it will help

the company to get quality products at the right time .company has regular suppliers

and they are ready to give materials as per the requirement of the company .so at

present company not conducting vendor development program.

Purchasing procedure

Components for the products manufacture by the company are proquried based

on the quality requirement assessed by the department taking into consideration the

stock available and pipleline suppliesexpected. In the case of purchase made for

new item on enquiry is floated and the quayion are recived and order finalized by

head of purchase department on the capacity of vendor based on the vendor

evalution .report they are required to supply samples for approval .the samples

submitted by the new vendor go to quality assurance deparment and based on their

report decision are taken .after satisfying the supply of the trial order they are

included in the approved vendor list. and regular purchase order and lealse order

by the purchase department. The approved vendor list are updated once in a year.

Vendor rating

Company has regular suppliers and they are ready to give materials as per

the requirements of the company. As stated the company has more than 200 regular

suppliers. The suppliers are classified into 3 categories A, B and C. company gives

these grades to the vendor depends upon some factors. They are the best quality

giving at the materials at right time and keep good relation with the company etc.

If a supplier gets “A” grade that means the company trust the vendor. After

that the company takes the same product from the vendor who with out initial

inspection. So the vendor who gets “A” grade has certain commitments with the

company. They want to keep the relation with out any interruption. So they want to

give quality goods at right time. By receiving the material from vendors purchase

department keep that materials in the stores and it is handled over to the quality

assurance department. A corporate purchase system is followed in KAMCO. All the

other unit gives their material requirement to the head office (Athani Unit) and the

head office’s purchase department purchase the material for all the other three units.

If the supplier get the grade of “B” that means the company has only less trust

on the vendor. When then products of this vendor is arrived the quality assurance

with conduct a random inspection for the time up that vendor come under the

category of “A” grade .this vendor will get the money only after the products are

inspected and the RIR report has been reached from the quality assurance

department is reached. Company will trust this type of vendors only very

less .products of this vendors are purchased after through check up only.

Vendor who come under the category of “C” has to very care because

company will take the products only after a good inspection . their products will be

taken only after the fill inspection of the quality assurance and if the product see any

problem with any of the product company will remove them from the vendors and

will not do any further transation from this vendors. payments are made only after

reciving the report of RIR from the quality assurance department

VENDORS OF THE COMPANY

Out of the 200 vendors of the company which come under the various

category of A,B,C are

CATEGORY A

Delta colling towers private Ltd ,Delhi

Rajkumar agro engineering private Ltd,Nagpur

Sifter international , Faridabad , Haryana

Boom buying private Ltd, New Delhi

Mathew sons agro equipments ,Ernakulam

CATEGORY B

Himalaya electrical company,Chickpet, Punjab

Universal traders ,perumbavoor, Ernakulam

Vasuki agro products ,veerasandra, Bangolre

Spraywell engineering works ,Ernakulam

Orient agro equipments Ltd ,Ernakulam

CATEGORY C

Joseph Mathew and co. Ernakulam.

Yemkey steels ,Tamilnadu.

Active engineering works ,Westbengal.

Om shiva sons international Ltd ,Punjab.

Shiva enterprises, indore ,madhaya Pradesh.

Store management

In kamco company is following a centralized storge system .all the item are

incoming and outgoing through the centralized store . from the purchase department

all the item will go the quatity assurance department for quality assurance .from the

quality assurance department the items will be recorded in accounts .the items will

be relased from the centre store from the request from the concerned departments

head on request. In the case of finished good after quality assurance is made the

items will come to the cetral store and will be realsed on the request from the

marketing department .

Inventory control

Inventory control is maintained by material department through central store system.

The inventory control is maintained and recorded to decrese the inventory cost by

ordering the inventory just in time and frist in frist and proper recording will help to

reduce the theaft of good by workers .

Techniques used

The company is using two techniques in the inventory control

FIFA- first in first

In this technique the items will be realized in the order in which they come to the

store . in the material department the items will be recorded in this technique and

realized on this bases

JIT-just in time

The company has introduced this system in the near future and this helped the

company to the inventory cost atits minimum .in this system the items are ordered

only and when required .the vendors are also satisfied with this system as the

ordering quantity is less and can be easily supplied .in this company will have to

spend less amount in bills and more money can be retained in the business

PERSONNEL DEPARTMENT

This department concentrates more on manpower resources and aim at attaining

maximum individual development, desirable work atmosphere and inter- personnel

relations, effective moulding of human resources as contrasted with physical

resources, and also gives proper training to human resources relating to individual

development, particular work, inter- relations, etc. KAMCO has determined and

provided adequate resources needed to implement and maintain the quality

management system and continually improve its effectiveness in order to enhance

customer satisfaction by meeting customer and other requirements. Man power

requirements for production and verification activities are identified, trained and

assigned to perform specific tasks which affect quality.

Functions of HRM Department

a. Recruitment and Selection.

b. Training and Development.

c. Promotion.

d. Welfare of the Workers.

e. Cultural Activities.

Selection proucdre

In KAMCO there is a specific recruitment and selection procedure. Recruitment

focuses on identifying the right person for the right job.

There is no obligation in promoting a person to the position of a person who retired

and goes on deputation and in appointing a person to the part after the death of his

father/mother, handicapped, sportsmen, etc, according to the retirement policy.

According to the present policy the company can recruit people on a temporary

basis from the employment exchange.

The employment exchange forwards a list of candidates for the required posts in

the unit on their notification to the district employment officer, Ernakulam. According

to the number of vacancies, a certain number of candidates will be sponsored by the

employment exchange. All the sponsored candidates are advised to appear for a

written/practical test and interview at the registered office at Athani on a date fixed by

the company. Verification of the certificates/testimonials will commence which will be

followed by the written/practical test and interview. Certificates proving one’s age,

qualification, caste, experience, etc for verification along with a photocopy of each of

them should be produced. The travel expenses of SC/ST or other eligible

communities will be borne by the company. On the selection and appointment of an

employee, intimation will be made by to the employment exchange and updating

their records.

This is the procedure followed by KAMCO Ltd for the recruitment and selection of

their skillful workforce.

At present, KAMCO is proudly foregoing ahead towards promising future. The ever

increasing ‘Demand’ for the KAMCO products and the ‘Trust and Confidence’ vested

in them by small and marginal farmers has made it possible for KAMCO to double its

production in a short span of time. KAMCO has made a significant contribution

towards achieving self- sufficiency in food production. Today, KAMCO proudly

rededicates itself to the cause of self- reliance and self- service of the people

because, KAMCO’s product occupies a place of pride among the forming community

throughout India and as well as among competitors who produce such products, for

their ‘Quality and Reliability’.

Steps in selection process

Training programme of KAMCO Ltd

Company is conducting different type of training for its workers and other office staff

On the job training

On the job training is conducted for the workers, workers education

programme are conducted under the supervision of the workers education

center. For this purpose, a 2 to 3 months training classes are provided to

the trade union leaders of the organization who act as the workers

teachers. After attending the training programme conducted at the workers

education center, they conduct classes to all the workers in the

organization by forming them into different batches.

For all the employees from the lower level to assistant engineers, the initial

2 years is their training period for which they get the consolidated pay.

Interview

Selection

Training

Appointment

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Off the job training

For the officers at the top level, middle level and supervisory level,

management development programme are conducted. Here, training is

provided on contract basis of 2 to 3 days by the faculties from different

management institution like Kerala State Productivity Council, Center for

Management Development, Indian Institute of Management, etc.

External training is given to the individuals who would be outside the promises

of the organization by conducting seminars.

After the ISO awareness training classes were conducted. The subjects

handled in these classes were personality development, personal relationship,

transitional analysis and productivity.

For the new recruits, a 15 days training classes are conducted specialized in

orientation training.

Based on the Factories Act, ESI Act, Maturity Benefit Act, Income Tax rules,

etc all the accountants and dealers are provided training classes.

A 15 days computer awareness-training programme is conducted with the

changing techniques at regular intervals.

Welfare schemes

It is the HRM of KAMCO that plans and implements the welfare

programme which fully motivate the work force of these company, besides the

HRM playing a crucial role within the organizational environment. The welfare

amenities are better motivators since they motivate the workforce. The

welfare work of KAMCO constitute the efforts of the employees to establish,

within the existing industrial system, working and sometimes living and

cultural conditions for the employees beyond what is indispensable.

A KAMCO welfare center is functioning within the premises of the

organization. There is a monthly cut of rs.25 from the salary of all the

employees towards the KAMCO welfare center. The employees and

employers towards the Kerala Labour Welfare Fund on a half yearly basis

also make a contribution i.e., from June and December salary.

The Employee Welfare Centre of KAMCO Ltd, undertake the following activities.

Grant in aid is provided to the wards of members in a year.

Medical treatments benefits are provided. If the employees undergo hospital

treatment, which result in absence from duty, cash benefit will be provided to

the concerned employee from KAMCO Welfare Centre.

Retirement benefits are provided. A unique advantage of the KAMCO

employees who are retiring is that they get their Provident Fund, Gratuity,

Pension and other benefits on the retirement day itself without any delay in

the procedure.

Thus promote education and development of work culture among the

community.

They establish and inculcate educational research programme into the public.

They render financial assistance to the residents of Nedumbassery

Panchayath.

They promote, facilitate and aid any other subjects of general public utility

beneficial to the employees, members of their family and the community to

which they belong without any motive for profit.

They promote family planning measures among the community in the area.

The Welfare activities of KAMCO includes canteen ,uniform ,washing and

stiching allowance, safety equipments, medical check up, medical benefit, housig

subsidy, transport subsidy or ESI, PF, Gratuity, Leave encashment, LIC for E/L,

Conveyance advance.There is no salary deduction for Gratuity, only persons who

have experience above 5 years are eligible for gratuity

Grievance prodedure

KAMCO does not have specific grievance handling machinery. Grievances if any

may be brought to the notice of the immediate superior. Depending on the

seriousness of the grievance, it may or may not be forwarded to the Managing

Director who is the final authority. A grievance once redressed cannot be put up

before a committee of appeals. Cases of indiscipline are treated in the following

manner:

− A memorandum/show cause notice is issued to the employee.

− If the reply received is not satisfactory, a charge sheet is issued.

− Again if the employee is unable to respond satisfactorily, an enquiry is carried

out.

− The enquiry report is placed before the HRD committee. Punishments are

decided depending on their recommendations.

The most common cases of indiscipline are absenteeism and overstaying of leave.

Late coming up to half an hour is allowed. Exceeding that salary cuts are effected.

Steps in grievances

Wages and salary adminsrtation

Wages wages are revised at four years .it is settled between the board of directors

and union members .of the company .it is mainly on long term

settlement ,performance appraisal is conducted when grades are given .there is a

priscribed firm conducity performance appraisal .

DEFINE CORRECTLY

COLLECT DATA

PROMOT REDRESSAL

IMPLEMENT AND FOLW UP

IDENTIFY GRIVANCES

production above the strandart set company is giving incentives over the

wages which will benefit of employe which constitute quarter of the pay packet.any

system of remuneration paid in which the amount paid independent on the result

oriented there by offering the employe an incentive to achive better result .it aims at

increased output productivity and utilization of resources .this scheme covers all the

permant employees .

salary

In case of salary it is compared to the kerala government employee scaleof pay.

Company is giving incentives out of the salary.

Incentives

Company is having three incentive scheme

1) Direct incentive

2) Semi direct incentive

3) Indirect incentive

1) Direct incentive

This is given to the workers who work in machine shop ,assembly ,and painting

booth. after conducting work study monthly incentive scheme has been

implemented

2)Semi direct incentive

This incentive is given to the employee in the maintaince , quality assurance

engineering stores , charges head ,and chief machineries.a semi direct incentive is

80% of direct incentive . it is also paid in monthiy bases

3) indirect incentive

Indirect incentive is paid who are paid not included the direct and semi direct

incentive .employee in the managerial category also under this indiect incentive is 60

% of direct incentive

Human relation

the company is keepaig a good relation in between the employees .hrm

department is taking care of the human relation activities in the organization .every

year the company is conducting cultural programs as all departments and employes

are take particitated in that activits . in evey year company is taking classes about

the effects of human relation in production .

Union relationship management

KAMCO has five recognized trade unions. The management has cordial

relations with all of them. They are; The KAMC Employees Union which has no

political affiliation, KAMCO Employees Union affiliated to CITU, KAMCO Employees

Association affiliated to INTUC, KAMCO Employees Federation affiliated to AITUC

and KAMCO Employees Centre affiliated to UTUC. As a part of its labor welfare

measures, KAMCO provides both statutory or intramural and non statutory or

extramural welfare measures.

Management development

Company is having a good and well developed management. all the department

of the company is headed with senior managers and below them deputy managers

and there assistant and workers. A good inter relationship is maintained in between

the departmental heads

COMPUTER DEPARTMENT

The company has a system department all the four units of the

company are connected through internet and all the four units have their servers. In

this corporate unit each department is connected through a LAN. The system

department uses a customer ERP (Enterprise Resource planning ) package,

backend with oracle Company’s system department is not as much developer, so it

is not used in any part of production. There is an inbuilt MIS function in this ERP

package and this package are divided into different modules . Each module if for

each department, by the help of these modules, departments can transact the data’s

and it makes the work easy.

Management information system

Company is having a good management information system.all the senior

managers are provided with laptops which are inter connected with internet with

system department central server .each department is having a modules in the

central which control the operation of that department and between other

department. Various modules for departments are

1) HRM MODUEL

Under this various items like attendance ,personal information ,provident fund

are coming under this module. When employess are punching their cards in the

machine their attendance are recorded in this module and are stored.at the end of

the month attandance is calculated and leave of each one is made.and based on this

attendance incentives are calculated automatically . the salary paid are also

recorded in this module.

Personal information of employee like name, date of

joining ,department of working , qualifiactions , production of the unit of paticular

month etc come under this module .training recived next time of training etc will be

recorded in personal information .based on this the efficiency and improvement in

job etc are calculated and evaluated.all details of each employe will come under this

module.

2) MARKETING MODUEL

Under this module sales accounting ,stock for sales ,various invoice details, vendor

sold details etc is coming under this. Sales details like number of goods sold ,place ,

time ,price type of payment ,date of collection of money etc will come under this.

Sales order placed by vendors ,type of products ,feedback of vendors , costumers ,

other information from vendors like tranning to be given , exibition etc will also

recorded and controlled in this . minor informatioins like chase number of machines

send to each vendors etc will also be recorded .this will helpcompany to detect the

product if it has any damage at any time and find the reasons.

3) INVENTORY MODUEL

Under this module the inventory details like purchase related items like IGRR

(inspection good received report ) inventory report etc are included in this module.

this module is connected to all production units like kanjikode, kalamassery,mala

and the raw material and finished good details are recorded inthis module and are

reported to the central store and good are issued and recived by the central store

department. This module will also kep details of the products like date of delivery ,

number of good , vendors ,quality place and department they are issued etc.

4) FINANCIAL ACCOUNTING SYSTEM MODULE

In this payments ,vouchers ,final accounting system ,are controlled and kept. Profit

and loss a/c ,balance sheet are prepared through this module. Various

payments ,type, parties ,date ,purpose etc will be ,this module will keep detsails of

online payment of cash through banks are kept .also receives for parties details ,date

of payment , type , etc will also come in this. Finala/c are also prepared with the help

of this module.the software developed will automatically will perpare the balance

sheet and P&l a/c will automatically prepared when the items are entred and type

which the comes under are given.all the financial details of the come under this

module

5) INCENTIVE MODULE

All the incentives are calculated ,kept , retrived are done through this

module.incentives are calculated for workers in different ways. For workers

incentives are calculated from the production the had made and for office staff it is

calculated on the base of the number of present days .in case of workers are

incentives are calculated by taking the production details from the number of

products produced which is kept in the production department . this will be taken and

the fixed percentage which is feeded in the hr module is calculated and are

transtred. Then the salary is added and it will be transfed to the bank a/c of the

worker which is kept in the hr module. In case of office staff incentive are calculated

in the bases of the attendance which is stored in the hrm module. This all are

automatically done by the interlinktion of various modules

6) PAYROLL MODULE

All the salary and wages are calculated and kept in this module. Salary and wages of

each employee are calculated and various expenses like PF , housing loan if any etc

will be calculated based on the information from HRM module .this payments will

also be recorded in the financial module and hrm module . after calculating all this

the money will be transferred to the bank a/c of the workers.

MATERIAL DEPARTMENT

The materials department has the charge of all inflow and

outflow of materials used for the production purpose. Stores department keep the

materials from their vendor for the required quality. All the functions of these

departments come under one roof. The company has around 250 qualified vendors.

Company gives the best vendor award for the best vendor. It will help the company

to get the quality materials in the right time.Company has regular suppliers and they

are ready to give materials as per the requirements of the company. As stated the

company has more than 200 regular suppliers. The suppliers are classified into 3

categories A, B and C. company gives these grades to the vendor depends upon

some factors. They are the best quality giving at the materials at right time and keep

good relation with the company etc.

KAMCO’s material and stores department function as follows:

1. Purchase of materials

2. Receipt and inspection of the materials

3. Storing of the materials

4. Issuing of materials

5. Accounting of materials

Procurement

The materials are procured are through vendor from various partes of the

country. The vendors are found out through open tender and testing the quality of

the product supplied with the quality policy of the company. Company has regular

suppliers and they are ready to give materials as per the requirements of the

company. As stated the company has more than 200 regular suppliers. The

suppliers are classified into 3 categories A, B and C. company gives these grades to

the vendor depends upon some factors. They are the best quality giving at the

materials at right time and keep good relation with the company etc.

If a supplier gets “A” grade that means the company trust the vendor. After

that the company takes the same product from the vendor who with out initial

inspection. So the vendor who gets “A” grade has certain commitments with the

company. They want to keep the relation with out any interruption. So they want to

give quality goods at right time. By receiving the material from vendors purchase

department keep that materials in the stores and it is handled over to the quality

assurance department. A corporate purchase system is followed in KAMCO. All the

other unit gives their material requirement to the head office (Athani Unit) and the

head office’s purchase department purchase the material for all the other three unit

Utilization of raw materials

The material procured are used form the assembly of tillers. the products are

mainly utiltzed in the assembly shop and manhine shop .the materials acquired will

go through various process like drilling ,painting , pre-treatment etc and will

assembled for making tillers.

Vendor development

Company is giving importance to its vendors . here the vendors are rated and given

the level of A, B, C .if vendor is coming under the catageory of a the company will

trust him more his products will be accured with out any inspection and quality

testing . vendors coming under the category of B the products will be tested

periodically and tested .vendors coming under the category of C the products are

checked on per load on a sample bases will be inspected. The company is also

giving best vendor award for the vendors who satisfy the vendor rules and quality of

the company.

Quality control

Quality Assurance clarifies the components into two critical component and non

critical components. Critical components are crank shaft, all engine parts, gear

wheels etc. non critical components are nuts, bolts, and screws etc. The clarification

is mainly for ignoring the practical difficulty in checking. Complete inspection occurs

in critical components and only sample inspection in non critical components.

Practical difficulty in checking non critical components is the problem there from here

the production department as their requirements takes the components. After getting

a finished product from the assembly department for the final checking. If it is “OK” it

is gone to the store. From these the machine will enter into marker through dealers.

Calibration cell:-Q.A departments are equipped with all modal facilities. The

company has a calibration cell to check and correct the measurements of all

measuring instruments.

QUALITY ASSURANCE DEPARTMENT

Company keep good quality in their all products with the help of quality

assurance department. For a company trying to more its presence felt in the

international marker through quality products and services, quality management

system should be at work. The company follows its 1SO 9001-2000 standards. It is

mainly for the quality.

Materials and the components from the vendor are received in the stores

department. And Accounts as inward receipts in the hands of stores (IGRR) This

IGRR NO: Delivery Chelan No: date, name of the vendor, quality grade of the vendor

etc. with this receipt the stores department handed over the components to the

quality assurance department. From here starts the function of Q.A department. In

Q.A department there is all specification of the components, to know these

components have all the specification that are needed for production.

Quality Assurance clarifies the components into two critical component and

non critical components. Critical components are crank shaft, all engine parts, gear

wheels etc. non critical components are nuts, bolts, and screws etc. The clarification

is mainly for ignoring the practical difficulty in checking. Complete inspection occurs

in critical components and only sample inspection in non critical components.

Practical difficulty in checking non critical components is the problem there from here

the production department as their requirements takes the components.

QUALITY ASSURANCE DEPARTMENT FUNCTIONAL HIERARCHY

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER R&D

CHIEF MECHANIC

MECHANICS

DEPUTY MANAGER QA

ASSISTANT ENGINEER

This department functions with the objective of ensuring that ‘QUALITY’ is

maintained for each product of the organization.

RIR (Receiving Inspection Report)

Material given for inspection to mechanics

Filed IRR i.e., whether OK or not/good or bad

IGRR (Inspection Goods Received Report) i.e., it shows the number of articles

accepted or rejected from quantity supplied, value of accepted quantity.

IGRR sent to the stores department

Procedure for quality assurance department

1) Production plan, sales plan and requirements plan emerges from the annual

business plan /budget. New requirement of machinery, equipments, tools, guards,

jigs and fixtures also emerge from the business/budget.

2) Concerned departments make resources plan comprising of new equipments and

up gradation of existing infra structure and submit proposals to managements.

3) Resources plan can also be need, based on the market situation and customer

feed backs.

4) For approval of the proposals, management’s takes into account selection of

equipment, the improvement in quality/productivity aspects and the justification put

forth by departments connected.

5) The management approval with corrections if any are forwards to concerned for

implementation of the programmer.

CERTIFICATE

BONAFIDE CERTIFICATE

DECLARATION

SERIAL NO. CONTENT PAGE

NO.

1 INDUSTRY PROFILE

2 COMPANY PROFILE

3 ORGANIZATION CHART

FUNCTIONAL AREAS

4 PRODUCTION DEPARTMENT

5 FINANCE DEPARTMENT

6 MARKETING DEPARTMENT

7 PERSONNEL DEPARTMENT

8 SALES DEPARTMENT

9 COMPUTER DEPARTMENT

10 QUALITY ASSURANCE DEPARTMENT

11 MATERIAL DEPARTMENT

12 CONCLUSION

INDUSTRY PROFILE

COMPANY PROFILE

ORGANIZATION CHART

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

PERSONNEL DEPARTMENT

SALES DEPARTMENT

COMPUTER DEPARTMENT

PURCHASE DEPARTMENT

MATERIAL DEPARTMENT

QUALITY ASSURANCE DEPARTMENT

CONCLUSION